Critical Illness Insurance

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What is Critical Illness Insurance and how can it help you

What is Critical Illness Insurance and how can it help you

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  • 1. Critical Illness Insurance Because saving your life shouldn’t cost your life savings
  • 2. Peter G Langelier Langelier Insurance Dr. Howard Rocket, DDS
  • 3. Despite Your Best Efforts . . . You may face a gap in your financial security Death Lost Wages Long-term Care Health Costs Uncovered Expenses
  • 4. What really happens in a health crisis?
    • Medical care
      • Co-pays
      • Deductibles
      • Uncovered expenses
      • Experimental drugs or treatments
  • 5. What really happens in a health crisis?
    • Economic Impact
      • Lost wages
      • Routine expenses
      • Additional household expenses
      • Unmet financial goals
  • 6. What really happens in a health crisis?
    • Rehabilitation
      • Long-term care
      • Physical therapy
      • Psychotherapy
      • Occupational therapy
      • Home remodeling
      • Personal help
      • Adaptive equipment
  • 7. What really happens in a health crisis?
    • Almost half of all consumer bankruptcies are due to medical expenses*
    • 75 percent of those bankruptcies occurred even though the consumers had health insurance coverage!*
    *Harvard Law School, 2005.
  • 8. The High Cost of Getting Sick
    • Average cost of a cancer diagnosis: $146,000 per patient*
    • Over 65% of cancer related expenses are indirect, and not covered by traditional insurance.*
    *American Cancer Society, Cancer Facts & Figures, 2005
  • 9.
    • Each year, about 5.5 million sufferers will survive a stroke, but many will have permanent disabilities*
    Risk of Illness and Disability *American Heart Association, Heart Disease and Stroke Statistics 2007 Update
  • 10. Risk of Illness and Disability
    • Of the 15.8 million Americans who will suffer a heart attack this year . . . 70 percent will survive*
    *American Heart Association, Heart Disease and Stroke Statistics 2007 Update
  • 11.
    • Of the 1.5 million Americans who will be diagnosed with cancer this year . . . 60 percent will live at least five more years.*
    Risk of Illness and Disability *American Cancer Society, Cancer Facts & Figures, 2005
  • 12.
    • Each year, over 25 million Americans survive a heart attack, stroke, or cancer.
    Risk of Illness and Disability *American Heart Association, “Heart Disease and Stroke Statistics,” 2007; American Cancer Society, “Facts and Figures 2007.”
  • 13. A Real Case Study
    • Dr. Howard Rocket
    • Author, “A Stroke of Luck”
  • 14. Where I went wrong . . .
    • Cancelled my disability income insurance . . . A $2.8 million blunder.
    • Didn’t have Critical Illness Insurance . . . A $710,000 mistake.
    • Total net wealth reduction to date: $3.5 million and counting
  • 15. Dr. Rocket: Stroke Case Study Incurred Expenses for the Period of October 27, 1995 to April 2007 Description Amount
    • Renovations and Alterations to Home
    • Hospital Bed
    • Wheelchair
    • Cane
    • Customized Ramp
    • Alterations to Shower
    • Transfer Bench
    • Wall Grab Bar
    • Toilet (raised)
    • Dining/Kitchen Tables (raised to accommodate wheelchair)
    • Entrances to Rooms (widened to accommodate wheelchair)
    • AFO (Swedish-made leg brace: $1,500 plus additional AFO at $500)
    $180,000
    • Transportation and Vehicle Modifications
    • Taxi ($30/day for 18 months)
    • Driver and car (50,000/year plus cost of larger vehicle for 36 months)
    • Canes story and WheelTrans vs. own van - TYPE A personality
    $ 8,100 $290,000
  • 16. Dr. Rocket: Stroke Case Study Incurred Expenses for the Period of October 27, 1995 to April 2007 Description Amount
    • Medical Necessities
    • Prescriptions (ongoing and possibly increasing for the rest of his life
    • Dental (on going work estimated at $30,000)
    • Glasses
    $195,000
    • Incidentals
    • Family Meals at Hospital
    • Hospital Parking
    $2,500 $2,500
    • Post-Stroke Costs
    • Post-stroke ongoing costs – miscellaneous items
    • Dental costs – explain reason
    $32,000
  • 17. Dr. Rocket: Stroke Case Study Incurred Expenses for the Period of October 27, 1995 to April 2007 Description Amount Total Incurred Expenses $710,000 Loss of Earned Income 9 years (20k per month x 9 yrs) $2,800,000 Earned Active Income (Pre-accident earnings – average 30k/month) $ 0 Total Economic Loss NET WORTH REDUCTION $3,510,100
  • 18. Toward the Future
    • With advancements in health care, more patients will survive . . . And associated costs will go up.
  • 19. What’s the Solution?
    • “ Net Worth Reduction Plan”
      • Deplete your savings and deplete your retirement accounts
      • Liquidate your estate
      • Go into debt
      • Bankrupt your family
      • Go without necessary treatment or care
  • 20. A Better Solution . . .
    • Critical Illness Insurance
    • Created 20 years ago by Dr. Marius Barnard:
      • “ Medical science can save lives, but it can't salvage lost bank balances. In other words, we'll keep you alive, but we won't provide the money to support you.”
  • 21. Long available abroad:
    • South Africa
    • United Kingdom
    • Canada
    • Australia
    • Japan
    • Now . . . the United States
  • 22. What Critical Illness Insurance Does
    • Immediate pay-out upon confirmed diagnosis of a covered condition
    • Absolutely no restriction on how funds used
    • No impact on other benefits, such as health insurance, Medicare, etc.
    • Benefits are income-tax free.
  • 23. Do You Feel Lucky?
    • Out of every ten people who reach age 65 . . .
    • At least 7 will have experienced stroke, cancer, heart attack or some other covered condition.
  • 24. Paying for Your Illness For every dollar spent, you’ll need to earn: Self-insurance $ 1.35 Debt $ 1.75 Liquidate assets $ 2.00 Critical illness insurance $0.20
  • 25. So what will it be?
    • Net-worth reduction
    • OR
    • Critical Illness Insurance
  • 26. Peace of mind . . .
    • Nothing can make a health crisis easy . . .
    • But critical illness insurance can ease the way to recovery.
  • 27. Because saving your life shouldn’t cost your life savings Life Insurance Disability Insurance Long-term Care Insurance Health Insurance Critical Illness Insurance
  • 28. Questions?